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The balances for the accounts listed below appeared in the Adjusted Trial Balance columns of the work sheet. Indicate whether each balance should be extended to a) the Income Statement columns or b) the Balance Sheet columns.
Full Warranty
A comprehensive guarantee that a product will perform as advertised and the seller will repair or replace defective items at no charge.
Limited Warranty
A warranty with certain conditions and limitations on the parts, time, type of defect, or other factors warrantied.
Warranty
An assurance, either express or implied, by one party that the other party can rely on its representations of fact; in sales, a binding promise regarding a product in the event that the product does not meet the manufacturer’s or seller’s promises.
Written Warranty
A documented guarantee provided by a manufacturer or seller, detailing the conditions under which a product can be returned, replaced, or repaired.
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